AMO.L Regulatory News (AMO)

28 Jan 2008 07:00

Amino Technologies PLC28 January 2008 +-------------------------------------+-------------------------------------+|FOR IMMEDIATE RELEASE | 28 January 2008|+-------------------------------------+-------------------------------------+ AMINO TECHNOLOGIES PLC RESULTS FOR THE YEAR ENDED 30 NOVEMBER 2007 Amino Technologies plc ("Amino" or "the Group"; stock code: AMO), the Cambridgebased broadband network software and systems Group, announces its audited finalresults for the year ended 30 November 2007. Key points: • Amino has achieved a strong turn-round to profitability, building on the Group's core strengths within the IPTV technology sector. • The financial results for the period were: o Revenues increased 27% to £32.3m (2006: £25.4m); o Gross margins remained solid at 35.1% (2006: 36.3%); o Operating profit turned round by £2.82m to £0.65m (2006: operating loss of £2.18m); and o Profit before tax was £1.4m (2006: loss before tax £1.6m as restated) reflecting strong growth and reduced costs. • Balance sheet remains strong and net cash increased by £3.1m to £17.0m (2006: £13.9m). • Shipments of AmiNET products for the period increased 45% to 598,000 (2006: 413,000); • Since the year end, board has been strengthened with the appointment of Peter Murphy as a non-executive director. On outlook, Keith Todd, Chairman stated: "The board believes that Amino is well placed to continue to grow and tomaintain a leadership position in IPTV. The board and executives are working toimprove the financial performance of the business, balancing investment withprofitable growth as we strive to establish sustained profitability." CONTACTS Amino Technologies: today: 020-7367-8888Keith Todd, Chairman thereafter on: 01954-234100Bob Giddy, Chief Executive www.aminocom.comStuart Darling, Finance Director Bankside: 020-7367-8888Steve Liebmann or Simon Bloomfield KBC Peel Hunt Ltd. (Nominated adviser and broker) 020-7418-8900Julian Blunt or David Anderson About Amino Amino Technologies plc (www.aminocom.com) specialises in IPTV softwaretechnologies and hardware platforms that enable delivery of digital programmingand interactivity over the Internet. Amino's technologies have been used incommercial deployments and trials in over 80 countries worldwide. Amino'sprincipal customers are telecommunications, broadcast and hospitality serviceoperators. Amino is partnered with world-leading companies in systemsintegration, middleware, conditional access, silicon, head-end systems andbrowser technologies. CHAIRMAN'S STATEMENT Introduction I am pleased to announce a year of strong progress and profits for the year ended 30 November 2007, building on the Group's historic strengths to deliver our business plan for the year. As I said last year, the Group has a number of core strengths including a verystrong position in the tier 2 and tier 3 telco Internet Protocol TV ("IPTV")market, global distribution channels, a low cost manufacturing supply chain anda very strong brand. These strengths have stood us in good stead over the pastyear, enabling the Group to increase revenues, gross margin and deliver theprofit improvement. Results and finance Revenue for the year increased 27% to £32.3m (2006: £25.4m) and the revenue fromthe top 20 accounts, which account for over 92% of the revenues, was up 34% to£30.0m (2006: £22.4m). The bulk of revenues in the year were based on sales ofestablished MPEG-2 products with the newer MPEG-4 products beginning tocontribute to sales in the latter part of the year. At the same time asincreasing both revenue and gross profit, the Group reduced its operating costbase during the year by 7% to £10.7m (2006: £11.4m). The Group generated aprofit before tax of £1.4m (2006: loss of £1.6m). The Group net cash increased to £17.0m as at 30 November 2007 (2006: £13.9m). Strategy and competitive market position Our core strategy is proving successful and will be maintained into 2008; Aminowill continue to exploit the emerging IPTV market, especially within the tier 2and 3 telco's which are deploying IPTV first and to progressively address thetotal market including tier 1 participants through direct selling andpartnerships. While breaking into the tier 1 telco remains an objective, Aminohas a successful, growing business within the tier 2 and tier 3 marketplace. Infact as the broadband market continues to develop, the power of the tier 1telco's to 'control' access to the consumer is reducing. This will lead toadditional opportunities for Amino in the so called tier 2/3 market are theseemerging telco's develop their IPTV strategies. The board is evaluating additional strategic initiatives that are complementaryto the core strategy to further accelerate the growth of the business in themedium term that will exploit the knowledge and assets that Amino has createdand invested in over the past few years in delivering over 1.5 million set-topboxes ("STBs") to over 1,800 customers. While the bulk of annual revenues aregenerated by our top 20 customers, the large number of other customers representthe 'seed corn' for future revenues as well as giving Amino access to the widermarket. The market today continues the transition from MPEG-2 to MPEG-4 technologieswhich offer greater data compression and reduced requirement for internetbandwidth. Amino's market will be underpinned by the continuing demand forMPEG-2 products and supplemented by the emerging MPEG-4 market opportunity forboth standard definition (SD) and high definition (HD) products. The fulldevelopment of the MPEG-4 HD market is dependent on sufficient network capacitybecoming available. As evidenced in the US, networks ideally need to be able todeliver multiple HD streams as consumers generally have more than one TV in thehome. Amino is well placed to exploit this market as the MPEG-4 HD growthaccelerates. Today, Amino continues to grow successfully through the delivery ofMPEG-2 and MPEG-4 SD products. Amino's partnerships have progressed across Asia during the year - not just asdirect revenue opportunities but also as additional sources for manufacturingproduct. Operational delivery The Group operates in a highly dynamic marketplace that is still evolving.Different regions of the world are adopting different combinations of suppliersto fulfil the whole service requirement; the roll-out of MPEG-4 SD and HD isoccurring at varied speeds and with different priorities. This leads tosignificant complexity and 'supply side' cost. The extensive customer base thatAmino has helps gives us a unique insight into what is actually happening in themarket. All companies face specific execution risks in such rapidly developing markets.These risks fall mainly into three areas: sales, technology and supply. Theboard and executive are continuing to undertake reviews of aspects of these toreduce or mitigate the risks. The Amino board and executive are well placed tobenefit from its 2007 experience and further improve the Group's executioncapability. Board The non-executive representation on Amino's Board has been re-constitutedfurther over the past month with a view to providing a structure and breadth ofskills to take Amino through its next phase of growth. In that context, I was pleased to announce recently the appointment of PeterMurphy as a non-executive Director and Chairman of the Audit Committee. AndrewBurke, who was appointed as a director last year, has been appointed Chairman ofthe Remuneration Committee. Staff The Group could not have been achieved this progress without the knowledge,skill and energy of the entire staff. The Board and I would like to thank themfor their continued commitment to the development of Amino. Outlook The Board believes that Amino is well placed to continue to grow and to maintaina leadership position in IPTV, a market still in its early stages of growth. Weare working to improve further the financial performance of the business,balancing investment with growth in order to establish sustained profitability. Keith Todd CBENon-Executive Chairman CHIEF EXECUTIVE'S REPORT Introduction At the outset of the year, we set ourselves and have achieved the key objectivesof maintaining our business momentum while at the same time, reducing the levelsof risk. By focusing upon our core strengths we have grown revenues, sustainedour gross margins, increased profit and maintained our position as a market andtechnology leader as evidenced by a very satisfactory list of 'industry firsts'. IPTV is still evolving. The transition to MPEG-4, particularly high definition(HD), has and will continue to be a challenge until all aspects of the relatedtechnologies stabilise. This will take time and will be influenced by industryconsolidation. Amino, by virtue of having demonstrated its competence,organisational stability, financial strength and technology leadership, is wellplaced to take advantage of the many benefits that this should bring. Achievements Whilst the Group has been focused and dedicated to bringing a range of MPEG-4HDproducts to the market, we were delighted to have achieved - • February: Deployment of Switzerland's first Fibre To The Home (FTTH) solution with Sierre Energie; • October: MPEG-4 H.264 certification (the first MPEG-4 HD set-top box to meet the Premium Conformance standards); • October: First deployment of a combined MPEG-4HD Satellite and IPTV service in North America with NDS and SES Americom; and • November: Membership of Open IPTV Forum by their invitation. In addition to the achievements within our core expertise, Amino has continuedto innovate in its markets and applications; for example: • Launched: o May: In partnership with Orb Networks, delivery of personal and broadband media to a TV screen; o August: Truly interactive application with Accedo Broadband in North America; o October: First ever Wireless IPTV deployment (Chile); and o December: First IPTV deployment in Central America. Our market These events have contributed to Amino being recognised by ABI Research as anIPTV market leader for the third consecutive year. Whilst the statistics inthis, or indeed any other report, cannot be taken as an absolute statement offact, it is independent validation that Amino has continued to apply and directits resources and efforts in the execution of realisable business that hasbrought measurable rewards. From 2004 through to 2008 Amino's revenues 51% (CAGR); this is consistent withmarket growth reported by both ABI Research and IMS Research. Strategy, environment and direction We intend to continue to expand and build upon our strong sales channels in theAmericas, Western and Eastern Europe, India and China. These channels haveenabled Amino to become a market leader. Together with committed partners such as WNC Wistron, we are targeting the tier1 telco's with our new MPEG-4 products. WNC has the proven capacity,infrastructure, reach and experience to satisfy the service criteria that iscommon to most tier 1 telco's. However, many tier 1 telcos are slow to commitwhilst they seek to close the gap between the broadband bandwidth required forIPTV and the capacity of their existing networks. The market has developed so far with IPTV solutions built from individualproduct components (including: head end, middleware, conditional access, browserand set-top box), each selected from one of a number of suppliers. Whenintegrated, these products form the complete solution; we refer to this as the'eco-system'. While these ad-hoc technology and business relationships(eco-systems) have been chosen by many tier 2 and tier 3 telcos, the larger tier1 telco's usually look for a complete solution. Amino is planning to use itsconsiderable integration skills, business relationships and market knowledge tooffer a fully packaged solution when desired. This will lower a customer's costof ownership whilst increasing Amino's added value and strengthening itscompetitive position. During 2007 we introduced a product for Internet TV. Whilst we have not yetenjoyed any significant revenues from this product, we have benefited fromdemonstrating our vision and innovation. Internet TV is becoming known as 'Overthe Top TV'. It supplements IPTV (the 'walled garden') and is forecast widely tobecome increasingly popular. It allows the consumer to enjoy the classictelevision experience and mix the conventional scheduled, sports and movieprogrammes with personalised video blogs. Amino is able to provide the 'gate'that opens up the 'walled garden' without breaching security or prejudicingviewing quality. As with IPTV, we are well placed to exploit this opportunitytogether with the early adopters of 'Over the Top TV'. Risk reduction We have now achieved the critical mass that gives us greater control over oursupply chain. We now have three suppliers (contract or licensed manufacturers)for our products and are no longer dependent upon any one supplier for any givenproduct. In addition to lowering the risk, this has enabled us to maintain thecompetitiveness of our supply chain. Additionally, more chip suppliers have entered the MPEG-4 arena. Whilst thereisn't a simple plug-in replacement for these complex devices, we are able tosecure a functionally equivalent product that reduces further our exposure toany one supplier. Market prospects There are continual references in the media to the rapidly changing viewingpatterns of today's consumers. The common thread to these articles is thatflexible, inter-active viewing can only be achieved through services deliveredover broadband. Amino continues to be at the very heart of IPTV and Internet TV. This providesan exciting and motivating environment for our staff and a huge opportunity forrevenue growth, both organic and through acquisition. Moving forward, we havecreated a solid, sustainable base for development which is not dependent uponany one application, customer, region, partner, channel or supplier. Bob GiddyChief Executive Officer FINANCE DIRECTOR'S REPORT Results for the year As indicated in my report last year, the Group's focus in FY2007 has been toimprove profitability by increasing gross profit generated whilst reducing fixedoperating cost. I am pleased to report that this was achieved. Revenue increased by 27.0% to £32.25m (2006: £25.45m) from the sale of 598,000(2006: 413,000) set-top boxes and associated engineering consultancy, supportservices revenue and licence income. Whilst approximately 96% of revenues weregenerated from set-top box sales, partnership agreements announced at the startof the year have helped Amino to address key emerging markets such as China,Asia Pacific and India generating £0.86m of licence and royalty income in a costeffective manner. Growth in revenue and gross profit has been adversely affected by the continuedweakness in the US dollar against sterling because the substantial majority ofsales and cost of sales are transacted in US dollars. The value of the US dollaragainst sterling decreased by approximately 5% during the year. Gross margins remain healthy at 35.1% (2006: 36.3%) contributing to an increasein gross profit of 22.3% to £11.31m (2006: £9.25m). Operating expenses reduced by 7% to £10.66m (2006: £11.43m) despite continuedessential investment in the market transition from MPEG-2 to MPEG-4technologies. Sales, general and administrative expenses reduced by £0.58m to£7.41m (2006: £8.00m) and research and development expenses were largelyunchanged at £3.24m (2006: £3.42m). At the year-end, headcount was 100 (2006:103). The average number of employees during the year was 107 (2006: 113). The board plans to increase headcount and operating expenses by 10-15% in FY2008to support the market transition from MPEG-2 to MPEG-4 technologies and expectedcontinued growth in business activity. The Group generated an operating profit for the year of £0.65m (2006: loss of£2.18m) despite incurring an operating loss of £0.64m in the first half. Theimproved performance achieved in the second half demonstrates productivity gainsachievable from higher volumes. Net interest received during the year was £0.74m (2006: £0.54m). The Group received payable research and development tax credits of £0.93m in theyear in respect of expenditure incurred in FY2005 and FY2006. Net assets which increased by £2.21m to £29.05m (2006: £26.84m) provide theGroup with a strong working capital base. The primary components of net assetsare net cash balances of £17.03m (2006: £13.88m), trade debtors of £9.64m (2006:£7.61m) and stock of £2.66m (2006: £3.81m). The increase in net assets largelyreflects operating profit generated, net interest receivable and payableresearch & development tax credits received during the year. Whilst representing approximately 30% of revenues in the year, 90% of tradedebtors of £9.64m (2006: £7.61m) were invoiced in October and November 2007reflecting the Group's traditionally strong fourth quarter. As at 30 November 2007, the Group had approximately £12m of tax losses availableto carry forward to set against future taxable profits, of which losses of£6.00m are recognised by the deferred tax asset of £1.72m and £6.00m remainsunrecognised. Amino completed a reduction of capital in the year and ended the year withdistributable reserves of £20.28m. The Group has a strong balance sheet with assets primarily made up of cash andtrade debtors. The research and development investments made in the previousthree years in developing MPEG-4 set-top box technologies should generaterevenues and gross profits in the years ahead. Future profits are expected to besheltered by the considerable tax losses carried forward. Stuart DarlingFinance Director Consolidated profit and loss accountFor the year ended 30 November 2007 Notes Year to Year to 30 November 30 November 2007 2006 (as restated) Audited Audited £ £Turnover 3 32,253,156 25,447,255Cost of sales (20,945,251) (16,197,987) __________ __________Gross profit 11,307,905 9,249,268Selling, general and administrative expenses (7,409,465) (8,002,600)Research and development expenses (3,252,115) (3,423,107) __________ __________Group operating profit /(loss) 646,325 (2,176,439)Interest receivable and similar income 967,903 623,525Interest payable and similar charges (230,831) (83,506) __________ __________Group profit / (loss) on ordinary activities 1,383,397 (1,636,420)before taxationTax on profit / (loss) on ordinary activities 932,573 48,171 __________ __________Group profit / (loss) on ordinary activitiesafter taxation being profit / (loss) for thefinancial year 2,315,970 (1,588,249) __________ __________ Basic earnings / (loss) per 1p ordinary share 4 4.1p (2.8p)Diluted earnings / (loss) per 1p ordinary 4 3.9p (2.8p)share Statement of Group total recognised gains and lossesfor the year ended 30 November 2007 Year to Year to 30 November 30 November 2007 2006 (as restated) Audited Audited £ £Profit / (loss) for the financial year 2,315,970 (1,588,249)Exchange translation difference on (149,218) (185,080)consolidation __________ __________Total recognised gains / (losses) for the year 2,166,752 (1,773,329) __________ __________Prior year adjustment - share based payment (140,607) n/achargeTotal recognised gains since last Annual Report 2,026,145 n/a __________ All amounts above relate to continuing activities. Consolidated balance sheetas at 30 November 2007 Notes As at As at 30 November 30 November 2007 2006 (as restated) Audited Audited £ £Fixed assetsIntangible assets 960,778 818,408Tangible assets 1,118,891 1,413,734 _________ _________ 2,079,669 2,232,142 _________ _________Current assetsStocks 2,659,659 3,808,362 Debtors: amounts falling due after more than 5 1,882,450 1,914,406one yearDebtors: amounts falling due within one year 5 10,720,082 8,586,781 12,602,532 10,501,187Short-term investments 2,000,000 9,000,000Cash at bank and in hand 15,065,867 12,658,769 _________ _________ 32,328,058 35,968,318Creditors: amounts falling due within one year 6 (5,358,920) (11,323,294) _________ _________Net current assets 26,969,138 24,645,024 Total assets less current liabilities 29,048,807 26,877,166 Creditors: amounts falling due after more than 6 - (36,299)one year _________ _________Net assets 29,048,807 26,840,867 _________ _________ Capital and reservesCalled-up share capital 7 584,130 582,630Shares to be issued 7 68,667 171,000Share premium account 79,749 21,807,240Merger reserve 16,388,755 16,388,755Profit and loss account 11,927,506 (12,108,758) _________ _________Total shareholders' funds 8 29,048,807 26,840,867 _________ _________ Consolidated cash flow statementfor the year ended 30 November 2007 Notes Year to Year to 30 November 30 November 2007 2006 Audited Audited £ £Net cash inflow from operating activities 9 1,901,106 459,334 Returns on investments and servicing of financeInterest received 913,552 551,491Interest paid (230,831) (9,506) __________ __________Net cash inflow from returns on investments andservicing of finance 682,721 541,985 __________ __________ Taxation 914,186 - __________ __________ Capital expenditure and financial investmentPurchase of tangible fixed assets (183,423) (723,894)Purchase of intangible fixed assets (408,677) (173,652) __________ __________Net cash outflow for capital expenditure and (592,100) (897,546)financial investment __________ __________ Acquisitions net of cash acquired - (617,702) Net cash inflow / (outflow) before use ofliquid resources and financing 2,905,913 (513,929) __________ __________ Management of liquid resourcesDecrease / (increase) in short-term deposits 7,000,000 (8,570,000)with banks __________ __________FinancingIssue of ordinary share capital 16,000 -Cash received from exercise of share options 2,540 53,024(Decrease) in other borrowings (46,555) (30,124)(Decrease) / Increase in bank borrowings (7,351,014) 8,064,516 __________ __________Net cash (outflow) / inflow from financing (7,379,029) 8,087,416 __________ __________Increase / (decrease) in cash 2,526,884 (996,513) __________ __________Reconciliation of net cash flow to movement innet fundsOpening net funds 13,968,354 14,468,271Increase / (decrease) in cash 2,526,884 (996,513)(Decrease) / increase in deposits (7,000,000) 8,570,000Decrease / (increase) in borrowings 7,351,014 (8,064,516)Exchange adjustments 219,115 (8,888) __________ __________Closing net funds 17,065,367 13,968,354 __________ __________ Notes 1 Basis of preparation The financial information in this preliminary announcement does not constitutethe Company's statutory accounts for the year ended 30 November 2007 or the yearended 30 November 2006, but is derived from those accounts. Statutory accountsfor 2006 have been delivered to the Registrar of Companies and those for 2007will be delivered after the Company's Annual General Meeting. The auditors havereported on those accounts; their reports were unqualified and did not containstatements under s237(2) or s237(3) Companies Act 1985. 2 FRS20 Share-based payments The Group is required to adopt FRS20, "Share-based Payment", for the first timefor accounting periods commencing on or after 1 January 2006. In accordance withthe transitional provisions of FRS20, the Group is required to recognise anexpense in respect of options granted after 7 November 2002 that were unvestedas of 1 December 2006. This expense, which is calculated by reference to thefair value of the options granted, is recognised on a straight line basis overthe performance period based on the Group's estimate of options that willeventually vest. The charge is then credited back to reserves. The adoption ofthe Standard has no effect on the Group's cash flow or net assets. Comparative figures for the year to 30 November 2006 have been restated to applythe provisions of FRS20, increasing expenses and the loss for the year as shownbelow: 2007 2006 Audited Audited (as restated) £ £Profit / (loss) for the financial year 2,315,970 (1,588,249)Share-based payments charge 50,532 140,607 _________ _________ Adjusted profit / (loss) for the financial yearbefore FRS20 Share-based Payments 2,366,502 (1,447,642) _________ _________ 3 Turnover segmental analysis Turnover is wholly attributable to the Group's principal activity. In theopinion of the directors, the Group currently has only one class of business.The analysis of turnover by destination is set out below. Year to Year to 30 November 30 November 2007 2006 Audited Audited £ £Geographical analysisUnited Kingdom, Europe and Africa 16,313,448 13,244,131Americas 14,858,934 11,892,181Asia Pacific 1,080,774 310,943 _________ _________ 32,253,156 25,447,255 _________ _________ 4 Earnings / (loss) per share Year to Year to 30 November 30 November 2006 2006 (as restated) Audited Audited £ £ Earnings attributable to shareholders 2,315,970 (1,558,249) _________ _________ Weighted average number of shares (Basic) 56,038,502 55,832,244 _________ _________ Weighted average number of shares (Diluted) 58,756,175 n/a _________ _________ The calculation of basic (loss)/earnings per share is based on profit/(loss)after taxation and the weighted average number of ordinary shares of 1p each inissue during the period. For diluted (loss)/earnings per share, the weighted average number of ordinaryshares in issue is adjusted to assume conversion of all dilutive potentialordinary shares. The Group has two categories of dilutive potential ordinaryshares: share options where the exercise price is less than the average marketprice of the Company's ordinary shares and deferred ordinary shares in respectof the acquisition of SJ Consulting Limited (see note 7). There is no dilutiveeffect in respect of the year ended 30 November 2006 as the Group was lossmaking. 5 Debtors As at As at 30 November 30 November 2007 2006 Audited Audited £ £Amounts falling due after more than one year:Other debtors 163,450 195,406Deferred tax 1,719,000 1,719,000 _________ _________ 1,882,450 1,914,406 _________ _________Amounts falling due within one year:Trade debtors 9,637,252 7,610,249VAT recoverable 80,107 103,044Other debtors 16,636 6,471Prepayments and accrued income 986,087 867,017 _________ _________ 10,720,082 8,586,781 _________ _________ Other debtors comprise rent deposits and amounts due in respect of share optionexercises. 6 Creditors Amounts falling due within one year As at As at 30 November 30 November 2007 2006 Audited Audited £ £Bank loans and overdrafts - 7,690,415Other loans 37,229 47,485Trade creditors 1,910,724 2,558,223Taxation and social security 181,741 202,740Other creditors 30,166 -Corporation tax - 18,707Accruals and deferred income 3,199,060 805,724 _________ _________ 5,358,920 11,323,294 _________ _________ Bank loans and overdrafts are secured by a fixed and floating charge over theassets of Amino Communications Limited. Amounts falling due after more than one year As at As at 30 November 30 November 2007 2006 Audited Audited £ £Other loans - 36,299 _________ _________ Other loans comprise unsecured borrowings from a third party at a fixed interestrate of 5% (2006: 5%). 7 Called-up share capital As at As at 30 November 30 November 2007 2006 Audited Audited £ £Authorised100,000,000 (2006: 100,000,000) ordinary shares of 1p 1,000,000 1,000,000each _________ _________Allotted, called up and fully paid58,413,051 (2006: 58,263,052) ordinary shares of 1p 584,130 582,630each _________ _________ In respect of the acquisition of SJ Consulting Limited during 2006, the Companyissued 99,999 ordinary shares on 20 January 2007 (the anniversary of theacquisition date) at a price of £0.6525. It has the obligation to issue 133,333ordinary shares of 1p each in tranches of 66,666 ordinary shares on the secondanniversary of the acquisition date and 66,667 ordinary shares on the thirdanniversary, contingent upon the continued service of certain key employees. On 20 January 2007 50,000 ordinary shares of 1p each were issued forconsideration of £0.32 per share. 8 Reconciliation of movements in shareholders' funds Year to Year to 30 November 30 November 2007 2006 (as restated) Audited Audited £ £Opening shareholders' funds 26,840,867 28,249,565Profit / (loss) for the period 2,315,970 (1,588,249)Exchange differences on consolidation (149,218) (185,080)Issue of ordinary share capital - capital 1,500 -Issue of ordinary share capital - share premium 79,749 -Shares to be issued (102,333) 171,000Share based payment charge 50,532 140,607Exercise of employee share options 11,740 53,024 _________ _________Closing shareholders' funds 29,048,807 26,840,867 _________ _________ 9 Reconciliation of operating profit / (loss) to net cash inflow from operatingactivities Year to Year to 30 November 30 November 2007 2006 (as restated) Audited Audited £ £ Operating profit / (loss) 646,325 (2,176,439)Depreciation and amortisation charge 704,255 563,915Loss on disposal of tangible fixed assets 112 760Share based payment charge 50,532 140,607Decrease / (increase) in stocks 1,148,703 (2,347,606)(Increase) / decrease in debtors (2,457,085) 2,836,057Increase in creditors 1,842,063 1,618,232Exchange differences on consolidation (33,799) (176,192) _________ _________Net cash inflow from continuing operating activities 1,901,106 459,334 _________ _________ 10 Contingent liabilities Amino's products incorporate third party technology, usually under licence.Inadvertent actions may expose the Group to the risk of infringing third partyintellectual property rights. Potential claims can still be submitted manyyears after a product has been deployed. Any such claims are vigorouslydefended 11 Copies of the Group's annual report will be sent to shareholders in duecourse and will be available on the Group's website (http://www.aminocom.com)pursuant to AIM rule 26 at that time. This information is provided by RNS The company news service from the London Stock Exchange